{"id":9747,"date":"2025-12-14T18:10:28","date_gmt":"2025-12-14T18:10:28","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=9747"},"modified":"2026-02-07T21:00:00","modified_gmt":"2026-02-07T21:00:00","slug":"cbdts-warning-fraudulent-deduction-claims-on-donations","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/cbdts-warning-fraudulent-deduction-claims-on-donations\/","title":{"rendered":"CBDT&#8217;s Warning Fraudulent Deduction Claims on Donations"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-8510\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/10\/photo_2025-01-27_00-03-07.jpg\" alt=\"Fake donations to parties, charities under tax lens\" width=\"1220\" height=\"1220\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/10\/photo_2025-01-27_00-03-07.jpg 772w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/10\/photo_2025-01-27_00-03-07-300x300.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/10\/photo_2025-01-27_00-03-07-150x150.jpg 150w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/10\/photo_2025-01-27_00-03-07-768x768.jpg 768w\" sizes=\"(max-width: 1220px) 100vw, 1220px\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69da6cad84c0e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69da6cad84c0e\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cbdts-warning-fraudulent-deduction-claims-on-donations\/#Overview_of_CBDTs_Warning_Fraudulent_Deduction_Claims_on_Donations\" title=\"Overview of CBDT&#8217;s Warning Fraudulent Deduction Claims on Donations \">Overview of CBDT&#8217;s Warning Fraudulent Deduction Claims on Donations <\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cbdts-warning-fraudulent-deduction-claims-on-donations\/#Actions_Taken_by_The_Central_Board_of_Direct_Taxes\" title=\"Actions Taken by The Central Board of Direct Taxes \">Actions Taken by The Central Board of Direct Taxes <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cbdts-warning-fraudulent-deduction-claims-on-donations\/#CBDT_NUDGEs_Taxpayers_Against_Claim_of_Bogus_Deductions\" title=\"CBDT NUDGEs Taxpayers Against Claim of Bogus Deductions\">CBDT NUDGEs Taxpayers Against Claim of Bogus Deductions<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cbdts-warning-fraudulent-deduction-claims-on-donations\/#Data-Driven_NUDGE_Campaign_%E2%80%93_AY_2025%E2%80%9326\" title=\"Data-Driven NUDGE Campaign \u2013 AY 2025\u201326\">Data-Driven NUDGE Campaign \u2013 AY 2025\u201326<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cbdts-warning-fraudulent-deduction-claims-on-donations\/#What_is_a_%E2%80%9CNUDGE%E2%80%9D_Campaign\" title=\"What is a \u201cNUDGE\u201d Campaign?\">What is a \u201cNUDGE\u201d Campaign?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cbdts-warning-fraudulent-deduction-claims-on-donations\/#Key_Areas_Likely_to_Be_Nudged\" title=\"Key Areas Likely to Be Nudged\u00a0\">Key Areas Likely to Be Nudged\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cbdts-warning-fraudulent-deduction-claims-on-donations\/#Why_This_Matters_for_AY_2025%E2%80%9326\" title=\"Why This Matters for AY 2025\u201326\">Why This Matters for AY 2025\u201326<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Overview_of_CBDTs_Warning_Fraudulent_Deduction_Claims_on_Donations\"><\/span><span style=\"color: #000080;\"><strong>Overview of CBDT&#8217;s Warning Fraudulent Deduction Claims on Donations <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>CBDT has launched a press release as part of an awareness campaign to combat fraudulent deduction claims in income tax returns, particularly those u\/s 80GGC (donations to political parties) and 80G (donations to charitable institutions). This targets bogus claims filed through intermediaries who issue fake receipts for commissions, often linked to hawala, fund routing, or cross-border activities.\u00a0Key Issues Identified by CBDT<\/p>\n<ul>\n<li>Bogus Entities: Many claims involve donations to Registered Unrecognized Political Parties or charitable institutions that are non-filers, non-operational, or not genuinely engaged in political\/charitable work. Intermediaries file returns with incorrect deductions on a commission basis, using suspicious receipts. The Central Board of Direct Taxes has flagged taxpayers claiming deductions without verifying recipient legitimacy.<\/li>\n<li>The Income Tax Department has identified and taken action against intermediaries who were filing ITRs with bogus deductions and exemptions on a commission basis.<\/li>\n<li>A significant number of false claims were made in the name of donations to Registered Unrecognized Political Parties, and Certain Charitable Institutions. Investigations reveal that many such political parties were non-filers, non-operational, and not engaged in genuine political activities.<\/li>\n<li>Use of Fake Donation Receipts like Evidence suggests the issuance of bogus donation receipts for Routing of funds and Hawala transactions Cross-border remittances &amp; Artificially inflating deductions to reduce tax liability<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Actions_Taken_by_The_Central_Board_of_Direct_Taxes\"><\/span><span style=\"color: #000080;\"><strong>Actions Taken by The Central Board of Direct Taxes <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The Income Tax Department is acting against intermediaries and scrutinizing high-risk claims. NUDGE Campaign: Starting December 12, 2025, targeted advisory messages urge accurate filing. Taxpayers can ensure your mobile number &amp; email are updated in your e-filing profile to receive them. Taxpayer can check deduction rules &amp; options for updated returns at\u00a0<a href=\"https:\/\/www.incometax.gov.in\/\">www.incometax.gov.in<\/a>.<\/li>\n<li>CBDT Advisory for Taxpayers that Taxpayers should Claim deductions only for genuine donations, Verify the registration, compliance status, and authenticity of the recipient entity, Avoid engaging intermediaries offering assured refunds or inflated deductions &amp; Rectify errors promptly to avoid penalties, interest, and prosecution<\/li>\n<li>Taxpayers should verify 80G\/80GGC eligibility via the department&#8217;s portal before claiming. This campaign aims to promote compliance and deter fraud.<\/li>\n<\/ul>\n<h3 data-start=\"139\" data-end=\"201\"><span class=\"ez-toc-section\" id=\"CBDT_NUDGEs_Taxpayers_Against_Claim_of_Bogus_Deductions\"><\/span><span style=\"color: #000080;\"><strong data-start=\"142\" data-end=\"201\">CBDT NUDGEs Taxpayers Against Claim of Bogus Deductions<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"203\" data-end=\"792\">Central Board of Direct Taxes\u00a0 has issued a warning and awareness press release cautioning taxpayers against claiming bogus deductions in their Income Tax Returns . The initiative forms part of a targeted \u201cNUDGE\u201d compliance campaign, aimed at discouraging fraudulent claims and promoting voluntary tax compliance.<\/p>\n<p data-start=\"203\" data-end=\"792\">The campaign primarily focuses on incorrect deduction claims related to donations u\/s 80G &amp; 80GGC of the Income Tax Act, which have been widely misused through non-genuine entities and intermediaries operating on a commission basis.\u00a0Details of the press release are mentioned hereunder:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-9748\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/12\/Screenshot-2025-12-14-231823.png\" alt=\"Claims on Donations\" width=\"1100\" height=\"1137\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/12\/Screenshot-2025-12-14-231823.png 411w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/12\/Screenshot-2025-12-14-231823-290x300.png 290w\" sizes=\"(max-width: 1100px) 100vw, 1100px\" \/><\/p>\n<h2 data-start=\"296\" data-end=\"339\"><span class=\"ez-toc-section\" id=\"Data-Driven_NUDGE_Campaign_%E2%80%93_AY_2025%E2%80%9326\"><\/span><span style=\"color: #000080;\">Data-Driven NUDGE Campaign \u2013 AY 2025\u201326<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"382\" data-end=\"648\">The Income Tax Dept. has announced the launch of a data-driven NUDGE campaign to encourage taxpayers to voluntarily review and correct deduction or exemption claims that have been identified as potentially ineligible through advanced risk analytics.\u00a0This initiative is advisory in nature and reflects a trust-first, non-adversarial approach to compliance.<\/p>\n<h3 data-start=\"770\" data-end=\"804\"><span class=\"ez-toc-section\" id=\"What_is_a_%E2%80%9CNUDGE%E2%80%9D_Campaign\"><\/span><span style=\"color: #000080;\">What is a \u201cNUDGE\u201d Campaign?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A NUDGE is not a notice, not a scrutiny, not an assessment, &amp; not a penalty trigger. It is an informational reminder sent to taxpayers where system analytics indicate a possible mismatch, excess claim, or risk marker. The objective is self-correction, not coercion.<\/p>\n<p>Nature of Outreach : As clarified in the press release, communication<span style=\"font-size: 16px;\">\u00a0is <\/span>advisory, <span style=\"font-size: 16px;\">language is <\/span>non-threatening, there is no<span style=\"font-size: 16px;\">\u00a0immediate consequence for receiving the message, the taxpayer<\/span><span style=\"font-size: 16px;\">\u00a0is <\/span>free to accept or reject<span style=\"font-size: 16px;\"> the suggestion, and voluntary<\/span><span style=\"font-size: 16px;\">\u00a0correction is encouraged <\/span>\u201cwherever required.\u201d This is consistent with the Department\u2019s recent shift away from blanket scrutiny.<\/p>\n<p data-start=\"2852\" data-end=\"2879\">his campaign signals that The Department prefers early correction over litigation Data quality has reached a level where silent errors are visible &amp; taxpayers are being given a grace window before enforcement.\u00a0 It also aligns with the expanded scope of updated returns, Reduced penalties for voluntary compliance, &amp; the litigation decongestion strategy<\/p>\n<h3 data-start=\"3227\" data-end=\"3263\"><span class=\"ez-toc-section\" id=\"Key_Areas_Likely_to_Be_Nudged\"><\/span><span style=\"color: #000080;\">Key Areas Likely to Be Nudged\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"3265\" data-end=\"3310\">Based on past campaigns and analytics trends, House property interest deductions, Chapter VI-A deductions (80C, 80D, 80G, etc.), exempt allowances, capital gains exemptions, set-off of losses &amp; inconsistent regime selection (old vs. new). NUDGE is a courtesy knock, not a raid. Fixing an error now is far cheaper than explaining it later. &amp;\u00a0This is compliance by conversation, not confrontation.<\/p>\n<h3 data-start=\"2812\" data-end=\"2850\"><span class=\"ez-toc-section\" id=\"Why_This_Matters_for_AY_2025%E2%80%9326\"><\/span><span style=\"color: #000080;\">Why This Matters for AY 2025\u201326<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This campaign signals that the department prefers early correction over litigation, data quality has reached a level where silent errors are visible, &amp; taxpayers are being given a grace window before enforcement.\u00a0 It also aligns with the expanded scope of updated returns, Reduced penalties for voluntary compliance, &amp; the litigation decongestion strategy. Details in the\u00a0Press\u00a0Release:<\/p>\n<p data-start=\"2852\" data-end=\"2879\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-10031\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/12\/data-driven-NUDGE-campaign-for-AY-2025\u201326.jpg\" alt=\"data-driven NUDGE campaign for AY 2025\u201326 \" width=\"1151\" height=\"1577\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/12\/data-driven-NUDGE-campaign-for-AY-2025\u201326.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/12\/data-driven-NUDGE-campaign-for-AY-2025\u201326-219x300.jpg 219w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/12\/data-driven-NUDGE-campaign-for-AY-2025\u201326-747x1024.jpg 747w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/12\/data-driven-NUDGE-campaign-for-AY-2025\u201326-768x1052.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/12\/data-driven-NUDGE-campaign-for-AY-2025\u201326-800x1096.jpg 800w\" sizes=\"(max-width: 1151px) 100vw, 1151px\" \/><\/p>\n<ul>\n<li><span style=\"color: #000080;\">You may also review the following blogs:<\/span>\n<ul>\n<li><span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cbdt-extends-due-date-for-tax-audit-itr-filing-ay-2025-26\/\" data-cke-saved-href=\"https:\/\/www.caindelhiindia.com\/blog\/cbdt-extends-due-date-for-tax-audit-itr-filing-ay-2025-26\/\">CBDT Extends Due Date for Tax Audit &amp; ITR Filing -AY 2025-26<\/a><\/span><\/li>\n<li><span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-changes-introduced-by-cbdt-in-tax-audit-report\/\" data-cke-saved-href=\"https:\/\/www.caindelhiindia.com\/blog\/key-changes-introduced-by-cbdt-in-tax-audit-report\/\">Key Changes Introduced by CBDT in Tax Audit Report<\/a><\/span><\/li>\n<li><span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/learn\/cbdt-issued-faqs-on-income-tax-bill-2025-with-key-highlights-and.html\">Income Tax Bill 2025\u00a0<\/a><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Overview of CBDT&#8217;s Warning Fraudulent Deduction Claims on Donations CBDT has launched a press release as part of an awareness campaign to combat fraudulent deduction claims in income tax returns, particularly those u\/s 80GGC (donations to political parties) and 80G (donations to charitable institutions). This targets bogus claims filed through intermediaries who issue fake receipts &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[642],"tags":[1252],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9747"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=9747"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9747\/revisions"}],"predecessor-version":[{"id":9753,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9747\/revisions\/9753"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=9747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=9747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=9747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}